Question

A company reports net accounts receivable of​ $154,000 on its December​ 31, 2017 balance sheet. The Allowance for Bad Debts has a credit balance of​ $17,000. What is the balance of Accounts​ Receivable?\

Answer 1

$137,000

Step-by-step explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

The net receivable is the difference between the balances in the accounts receivable and the Allowance for Bad Debts account.

= $154,000 - $17,000

= $137,000

Answer 2

$137,000

Step-by-step explanation:

The net closing accounts receivable is reported in the financial statement which adjusted amount after bad debts for the period.

This can be calculated by simply calculating the difference of closing accounts receivable and bad debts. The resultant amount is net closing accounts receivables.